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2016 (1) TMI 763 - CESTAT NEW DELHI

2016 (1) TMI 763 - CESTAT NEW DELHI - 2016 (343) E.L.T. 358 (Tri. - Del.) - Demand of differential duty on account of non-inclusion of AED (T&TA) in the cost of Grey Fabrics for excise purposes - inclusion of AED (T&TA) in the cost of Grey Fabric is sent for job work when the same is available as credit to the appellant - Held that:- It is clear that in the case under consideration of CCE, Pune vs. Dai Ichi Karkaria Ltd [1999 (8) TMI 920 - SUPREME COURT OF INDIA] the assessee can utilize the cre .....

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which cannot be passed on by way of utilization of the said credit for discharging the duty on finished product. This much is clear from appellant’s own treatment of the said credit as expenditure in the balance sheet for the year 2003-2004. Their not showing the said duty as expenditure in the next year will not affect the fact the AED paid has to be observed as a cost in view of the fact that they are not able to utilize the same - Decided against assessee. - Excise Appeal No. 2319 of 2006 - F .....

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inal products. No AED (T&TA) was payable on the final products, namely, Grey Fabrics. Proceedings were initiated against the appellant as they have not included the component of AED (T&TA) while paying duty on the assessable value of Grey Fabrics manufactured on job work basis or sent for further processing on job work process. The Original Authority confirmed the demand of differential duty on account of non-inclusion of AED (T&TA) in the cost of Grey Fabrics for excise purposes. On .....

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e vs. Dai Ichi Karkaria Ltd. reported in 2004 (65) R.L.T. 443 (S.C.) and also Board Circular dated 12/03/2003. During the course of arguments, the learned Counsel for the appellant stated that when the AED (T&TA) was legally available as a credit, there is no question of addition of that component in arriving at the cost of Grey Fabrics for excise duty purpose. The learned AR on the other hand contended that the lower Authorities have examined the issue. There is no basis in the appeal to ta .....

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e included in determining the cost of production of excisable goods. The said decision is not applicable to the facts of the present case. This is clear from the observations and findings of the Hon ble Apex Court, as reproduced below :- 24. We think it is appropriate that the cost of the excisable product for the purposes of assessment of excise duty under Section 4 (1) (b) of the Act readwith Rule 6 of the Valuation Rules should be reckoned as it would be reckoned by a man of commerce. We thin .....

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